Only the Best: How Per Annum Onboards India’s Top 2% Credit Seekers!

Peer-to-peer (P2P) lending has revolutionised borrowing and lending by connecting lenders directly with credit seekers through digital platforms. P2P platforms use their unique lending algorithms for evaluation on many factors, including credit scores, financial histories, and more.

Our sister entity Lendbox which is India’s one of the first NBFC-P2Ps, assesses the creditworthiness, by relying on multiple data points before we onboard them:

1. Bureau Analysis (Average CIBIL above 700): P2P platforms analyse the borrower's credit score from credit bureaus like CIBIL. A score above 700 indicates good creditworthiness and reliability in repaying debts.
2. FOIR (Fixed Obligation to Income Ratio): FOIR measures the borrower's ability to manage additional debt based on their income and existing obligations. Calculated by dividing fixed obligations by the total income, a lower FOIR indicates better financial health and debt management. This guides P2P lending firms in assessing risk and loan eligibility.
   
3. Bank Statement Analysis: Regular income and expenses, and average bank balance indicate the financial stability of the borrower and spending habits. NACH hits and failed transactions show debit transactions history providing insights into repayment behaviour.
4. Physical Verification of Address (for Working Capital Loans): P2P lending firms conduct physical address verification for working capital loans to verify borrower identity and residence, reducing fraudulent applications and enhancing profile reliability, as part of due diligence to meet platform eligibility criteria and regulatory requirements.
5. Borrower's Vintage on Our or Partners' Platform: This metric assesses the borrower's history and performance on the P2P platform or partner platforms. It evaluates factors such as the duration of the borrower's relationship with the platform, repayment history, and any previous defaults.
6. Credit Card Limits and Payment Behaviour: P2P lending platforms evaluate a borrower's creditworthiness and financial discipline by analysing their credit card usage, limits, and payment history, providing insights into their financial responsibility and debt management ability.
7. Past Loans Performance: Reviews the borrower's history of loans, including repayment behaviour and any defaults.
8. Business or Job Vintage and Steadiness: This metric evaluates the stability and longevity of the borrower's business or employment. It involves assessing how long the borrower has been in their current job or running their business, which helps indicate financial stability and predictability in income, which is essential for reliable loan repayment.
9. E-Mandate / NACH Registration: Registration for electronic mandates ensures smooth repayment processes and reliability.

By following these stringent measures, our sister entity Lendbox has historically maintained gross NPAs below 1% and has been able to achieve a 100% repayment track record for 5 Lakh + lenders on our platform. We are dedicated to maximising the return of our lenders by onboarding the best credit seekers of the country.